Waiting for the Fed’s Thoughts, $2K Currently Provides Support

Gold prices, charts and analysis

• Fed speakers may provide new guidance to the market.
• The precious metal remains supported.

most read Latest gold price – $2,000/oz. Support is holding as the US inflation report approaches

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Gold is starting the week in full swing after testing the $2k support in recent sessions. The precious metal continues to respect this level and with little high impact economic data on the calendar this week, traders will be looking forward to comments from a group of Fed speakers this week to offer some volatility. Today sees scheduled commentary from Fed members Bostic, Kashkari, Parkin and Cook, while other board members will speak throughout the week. The highlight of the week comes on Friday when Federal Reserve Chairman Jerome Powell is scheduled to speak at the Thomas Lubach Research Conference. According to the Federal Reserve Web siteThis year’s conference will “highlight key issues in monetary policy and economics and facilitate discussions on the challenges faced by monetary policy makers.”

US Treasury traders will be following the Fed’s comments this week closely for any clues about the central bank’s intentions going forward. According to one closely watched indicator, the Fed has finished tightening monetary policy and will start cutting interest rates at the end of the third quarter. This view runs counter to some of the Fed’s more hawkish members who continue to press their case for more rate hikes in the coming months. The 2-year interest rate-sensitive currency is currently trading at a yield of 4%, while the 10-year US benchmark has a change of 3.48%.

Supply of the precious metal remains above $2,000/oz. level and looks to break again above 2022 USD/Ounce on Friday. high. While the support held, a series of recent lower highs pressured the price of gold, indicating a breakout. Gold is supported by the 20-day simple moving average, although this indicator is still under threat. If it breaks the 20-dma and the $2k level, a set of previous lows will drop to $1,970 an ounce. You must provide support.

Daily Gold Price Chart – May 15, 2023

Chart via TradingView

The position of retailers has changed little

Retail trader data shows that 58.03% of traders are net long with the ratio of long to short traders at 1.38 to 1, the number of traders long is 0.94% higher than yesterday and 4.42% higher than last week, while the number of traders is down Traders’ net short positions are 1.09% higher than yesterday and 4.99% lower than last week.

We usually take a view contrarian to crowd sentiment, and the fact that traders are holding on suggests that gold prices could continue to drop. Traders are long in positions longer than yesterday and last week, giving us a combination of current sentiment and recent changes Stronger contrarian trading bias for gold.

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